First Conversion of Boeing 737-300 Nearing Completion 
Bedek is nearing completion on converting its first Boeing 737-300 passenger aircraft into a full freighter configuration. The aircraft is scheduled to be redelivering to the customer in mid June 2003. The next aircraft scheduled for conversion by Bedek is a 737-300QC (Quick Change), and will enter the hangars during first week of July 2003.
Bedek Leads Market in Converting Boeing 747s into Freighters
IAI's Bedek Aviation Group was responsible for substantial part of the B747-200/100 aircraft conversion market that took place during the past two years. Bedek converted passenger aircraft into freighter
The value of B747 conversions at Bedek during this time frame reached $70 million.
Bedek's hangars can accommodate four B747's simultaneously.
Passenger to cargo conversion programs increase when the residual values of aircraft fall far enough that operators will take the economic risk to acquire and convert these aircraft to freighter configuration even if they don't have an immediate need for the aircraft.
Bedek Wins Contract to Convert Boeing 767s
IAI's Bedek Aviation Group recently won a contract to convert Boeing 767-200s and Boeing 767-300s from passenger to freighter configuration. The first aircraft arrived in Bedek's hangars in May 2003.
The full potential of this contract could be for 30 aircraft and could exceed over $50 million in work for Bedek. The STC covering this work is expected to coincide with the delivery of the first aircraft in this program before the end of 2003.
Bedek Working on Quick Change B737 Conversion Program
IAI's Bedek Aviation Group is currently working on a quick change conversion program that will allow a quick change from pax aircraft into cargo configuration and vise verse, according to operational needs, in less than one hour. The development project is in advanced phases, and the first conversion is scheduled to take place in either Tel-Aviv or one of the authorized repair centers worldwide. The aircraft will be called a Boeing 737-300QC.
Bedek Expects Option Contract to be Exercised Shortly in B737-400SF (Special Freighter) Aircraft
An undisclosed customer awarded Bedek Aviation Group an option contract to convert at least five Boeing 737-400SF from passenger to freighter configuration.
The first aircraft is scheduled to be inducted into the Bedek hangars by the first quarter of 2004.
Bedek is also examining a QC version of the Boeing 737-400 model.
Bedek Current Orders for B737 Conversions Exceed $85 million
Bedek Aviation Group currently has 33 firm orders to convert various models of the Boeing 737 aircraft from passenger to freighter configurations.
Total value of the contracts for these conversions now exceeds $85 million.
Bedek is working on converting various B737-300 and B737-400 models.
For further information, please contact:
Doron Suslik
Deputy Corp. VP Communications
Tel: 972 (3) 935-8509
Fax: 972 (3) 935-8512
Email: hpaz@iai.co.il